State may lose efficiency-linked financial incentives worth crores

Apr 26, 2011SharmaNewsComments Off on State may lose efficiency-linked financial incentives worth crores

Not everything works to the tune government guesses. The Restructured Accelerated Power Development and Reforms Programme (R-APDRP) launched in 2010 to decrease aggregate technical and commercial (AT and C) losses, is expected to deprive the state of efficiency-linked financial incentives. About Rs 96.40 crore in Part-A of the project sanctioned in September 2009, the AT and C losses are to be brought down to 15 per cent in 14 major towns of the state by rolling out of IT-enabled services. For the state of himachal however the project cost will be treated as grant otherwise 90 per cent of it will be deemed as loan. 2 per cent of the amount converted into grant in the Rs 289 crore part-B of the project for strengthening the distribution system as incentive to the employees. A failure to implement the project in time and achieving the targets could deny the fund-starved state electricity board up to Rs 350 crore while the employees may tend to lose incentive money to the tune of Rs 5 crore.